Form 4: Tutor Perini Executive Granted Phantom Stock Units

William E. Jensen, Executive Vice President of Tutor Perini Corporation, was granted 19,439 cash-settled phantom stock units on March 14, 2025.

Summary

• William E. Jensen, an Executive Vice President at Tutor Perini Corporation, filed a Form 4 to report changes in beneficial ownership.
• On March 14, 2025, Jensen was granted 19,439 cash-settled phantom stock units.
• These units vest in three tranches: 6,479 on March 14, 2026, 6,480 on March 14, 2027, and 6,480 on March 14, 2028, contingent upon continued employment.
• The phantom stock units will be settled in cash based on the closing price of Tutor Perini Corporation's common stock on the vesting date.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of phantom stock units is a standard practice and aligns executive interests with shareholder value. The vesting schedule promotes retention.

Positives

• The granting of phantom stock units aligns the executive's interests with the company's performance.
• The vesting schedule encourages continued employment and commitment to the company's long-term success.

Risks

• The value of the phantom stock units is tied to the performance of Tutor Perini Corporation's common stock, which can be volatile.
• The executive must remain employed with the company to fully vest the units, creating a potential risk of loss if employment is terminated.

Future Outlook

The phantom stock units vest over the next three years, contingent on continued employment.

Industry Context

Granting stock-based compensation is a common practice in the construction industry to incentivize and retain key executives.

Comparison to Industry Standards

• Many companies in the construction and engineering sector, such as Fluor Corporation (FLR) and Jacobs Engineering Group (J), utilize stock options, restricted stock units, and performance-based equity awards as part of their executive compensation packages.
• The vesting schedules and terms of these awards often vary based on company performance, individual contributions, and market conditions.
• The specific value and structure of the phantom stock units granted to William E. Jensen would need to be compared to similar grants at peer companies to assess its competitiveness and alignment with industry standards.

Stakeholder Impact

• Shareholders: The granting of phantom stock units aligns executive compensation with company performance, potentially benefiting shareholders.
• Employees: The grant may have a positive impact on employee morale as it shows the company is investing in its leadership.

Key Dates